Rule of 20:10:15 for Financial Freedom

Today we will understand the fundamental rule of 20:10:15 for Financial Freedom.

Step 1 (20:10): ₹20,000 monthly SIP in Equity Mutual Funds, expecting 12.64% CAGR (refer to disclaimer below) for 10 Years.

This will generate a corpus of ₹46.36 Lakhs* on a total investment of ₹24 Lakhs.

Step 2 (15): Let this investment of ₹46.36 Lakhs in Equity Mutual Funds grow for another 15 years (expecting 12.64% CAGR, refer to disclaimer below).

After 15 years, this corpus will grow into ₹2.76 Crores*.

Step 3 (Financial Freedom): Now from this corpus of ₹2.76 Crores one can take the regular withdrawal of Rs 2 Lakhs per month for 50 years.

The corpus if invested in a balanced fund (50E50D) expecting 9.92% CAGR (refer to the disclaimer below) will still grow to leave a legacy# for your family.

This Rule of 20:10:15 will not only help you to secure your own financial future, but also have the potential to give generational wealth to your family.

If you need help in planning your financial freedom or have any queries you can get in touch with us at gsfs.link/invest

Disclaimer

*Assuming Investment in Equity Funds (SENSEX) and an average return of 12.64% p.a. as per AMFI Best Practices Guidelines Circular No. 135/BP/109/2023-24 dated November 01, 2023. Returns are calculated by taking the mean of 10-year rolling returns between 01/06/13 and 30/05/23 for various benchmarks.

#Assuming Investment in Hybrid Funds (Equally in Equity & Debt – Sensex: GSec) and an average return of 9.92% p.a. as per AMFI Best Practices Guidelines Circular No. 135/BP/109/2023-24 dated November 01, 2023.

Disclaimer: The figures/projections are for illustrative purpose only. Past performance may or may not be sustained in future and is not a guarantee of any future returns. Mutual Fund investments are subject to market risk, Read all scheme related documents carefully.

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